Legal Magazine

Baidu’s Alleged Anticompetitive Tactics in Brazil

Posted on the 14 April 2015 by Angelicolaw @AngelicoLaw

Competition is a natural part of business, and the cutthroat online business world is no exception. But when competitive zeal crosses the line into tactics deemed illegal under Brazilian law, companies face consequences. And that’s what has happened to Baidu, the Chinese search engine company that allegedly used anticompetitive tactics to quash a rival.

Baidu is the maker of an antivirus app that competes against PSafe. Baidu’s anticompetitive tactics come in the form of a pop-up message that flags the PSafe app as a virus and then asks users to uninstall it, TechCrunch reports. But here’s the kicker – these messages only appear if the user’s device has a SIM card from a Brazilian cell phone operator.

While PSafe suffers from Baidu’s alleged anticompetitive tactics, PSafe is not believed to be the direct target of the Chinese company. Rather, Baidu’s rivalry is with Qihoo 360, PSafe’s largest financial backer. In 2012, Qihoo 360 entered the Chinese search engine market, igniting discontent from Baidu.

In Brazil, the competition has escalated into legal action taken against Baidu. Baidu did not initially comply with an injunction ordering the company to cease its anticompetitive behavior, which then led to a judicial order to remove Baidu’s app from the Google Play Store. The judge in the case also imposed daily fines on the company.

For its part, Baidu offered an explanation for the messages flagging PSafe as a virus. The company claims that the warnings came from a malware system that flagged the app as “high risk”. Baidu now says that PSafe’s classification has been changed to “potential risk”.

Internet law professor Ronaldo Lemos told TechCrunch that Baidu may still be violating Brazil’s Internet law, known as the Marco Civil. For example, Lemos says that Baidu’s terms of service say that China is the jurisdiction to resolve customer conflicts, but such terms run counter to the Marco Civil and the Brazilian Consumer Code.

So now it would seem that Baidu’s conflict is no longer only with PSafe and Qihoo 360. The Chinese company’s actions have brought on a larger, and perhaps more powerful rival – the Brazilian legal system.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • The Verdi Project: Rigoletto

    Verdi Project: Rigoletto

    In which our composer creates a sensation and changes the world of opera, forever. by Paul J. Pelkonen Tito Gobbi (with Renata Scotto) looking suitably... Read more

    The 23 April 2018 by   Superconductor
    CULTURE, THEATRE & OPERA
  • the Ship is Sinking

    Mishpacha Magazine (Hebrew edition) has been running an initiative recently promoting new young couples in the Haredi community take on their own mortgages... Read more

    The 23 April 2018 by   Gldmeier
    RELIGION, SOCIETY, SPIRITUALITY
  • Flower Power: Beyond the Beauty

    If we could see the miracle of a single flower clearly, our whole life would change.” – Lord Buddha. Life is a journey that is full of special moments; like... Read more

    The 23 April 2018 by   Meet Rv
  • Dress To Impress! 5 Dresses For Your First Date

    Dress Impress! Dresses Your First Date

    Are you looking to make a great first impression on a new man when you show up for your first date with him? Are you conflicted as to how to dress, what... Read more

    The 23 April 2018 by   Meet Rv
  • A RAINY DAY in VOLCANOES NATIONAL PARK, HAWAII

    RAINY VOLCANOES NATIONAL PARK, HAWAII

    In the Kilauea Iki Crater in Volcanoes National Park, HawaiiA week ago, on our trip to the Big Island of Hawaii, Art and I were hiking across what felt like a... Read more

    The 23 April 2018 by   Carolinearnoldtravel
    TRAVEL
  • Congress Has Grilled Facebook CEO with Tough Questions Over Data Misuse

    Congress Grilled Facebook with Tough Questions Over Data Misuse

    Mark Zuckerberg has faced Serious Allegations on Facebook Data breaching Scandal in two days Congress testimony –as it happened. Read more

    The 23 April 2018 by   Ruby Mariah
    GADGETS, TECH
  • Video of the Week: Anatomy of the Toes

    Video Week: Anatomy Toes

    In this lesson, we will look at the anatomy of the toes. I will also discuss how your toes move, what their functions are, and which kinds of common problems... Read more

    The 23 April 2018 by   Ninazolotow
    FITNESS, HEALTH, HEALTHY LIVING

Paperblog Hot Topics

Magazines